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DW 1: Airport operators
or “Rules for airport operators claiming deductions from shared income”
You could also call this:

“Rules for subtracting expenses related to racing horses”

You can’t subtract money you spend on racing bloodstock or anything related to racing bloodstock from your income.

You also can’t subtract money you spend on getting bloodstock ready for racing, except in two cases:

  1. If you run a business breeding bloodstock, you’re getting the bloodstock ready to sell, and you don’t race the bloodstock yourself.

  2. If you’re paid to get bloodstock ready for racing, and that payment is counted as part of your income.

These rules override the general permission to subtract business expenses from your income.

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Next up: DW 3: Non-resident general insurers and shippers

or “Rules for overseas insurers and shippers making money in New Zealand”
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Part D Deductions
Expenditure specific to certain industries

DW 2Bloodstock racing

  1. A person is denied a deduction for expenditure or loss that they incur—

  2. on the racing of bloodstock; or
    1. in relation to the racing of bloodstock.

      1. A person is denied a deduction for expenditure or loss that they incur in preparing bloodstock for racing, except, first, when—

      2. the person is in the business of breeding bloodstock; and
        1. they incur the expenditure or loss in preparing for disposal of bloodstock that they are preparing for racing; and
          1. they do not race the bloodstock on which they incur the expenditure or loss.

            1. A person is denied a deduction for expenditure or loss that they incur in preparing bloodstock for racing, except, second, when—

            2. the person incurs the expenditure or loss in preparing the bloodstock for racing; and
              1. they receive consideration for preparing the bloodstock for racing; and
                1. the consideration is income of the person.

                  1. This section overrides the general permission.

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                  Notes
                  • Section DW 2(2)(b): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).